This paper develops a theoretical model that explains how long-term consumption goals influence households' choice of real assets in situations when these assets have no investment value. Using a suburban residential housing market that exemplifies such a market, we develop a general equilibrium...

"We develop a theoretical model of illiquidity, in which illiquid assets are being traded by two agents -- buyers and sellers. Illiquidity is defined as the expected time it takes a seller to sell his asset at the optimal price. The theoretical model is developed in the context of transactions...

Our empirical study analyzes house search duration in íhotî (rising prices) and ícoldî (declining prices) housing markets. It focuses on the effect of householdsí ex ante holding horizon ñ or the expected housing tenure at the time of their search ñ on the realized search duration. Our...